Boneyard Tools

Home Equity Calculator

See how much of your home you actually own. Enter the current market value and your remaining mortgage balance to get your equity in dollars, your loan to value ratio and your equity percentage.

How to calculate home equity

  1. Enter the current market value of your home.
  2. Enter your remaining mortgage balance.
  3. Read your equity, loan to value ratio and equity percentage.

Examples

400,000 home with a 250,000 balance

Market value 400,000, mortgage balance 250,000
Equity 150,000, loan to value 62.5%, equity 37.5%

Frequently asked questions

What is home equity?

Home equity is the part of your home you own outright. It equals the current market value minus the balance you still owe on the mortgage and any other loans secured by the home.

What is loan to value?

Loan to value, or LTV, is your mortgage balance divided by the home value, shown as a percent. A 250,000 balance on a 400,000 home is a 62.5 percent LTV. Lower LTV usually means better loan terms.

What does negative equity mean?

Negative equity, or being underwater, means you owe more than the home is worth. It happens when the balance is larger than the market value, often after prices fall. This tool will show a negative equity figure.

How much equity can I borrow against?

Lenders often let you borrow up to a combined loan to value of around 80 to 90 percent, depending on the program. The exact amount depends on your lender, credit and income, so treat this as an estimate.

Does equity include selling costs?

No. This is gross equity based on market value. If you sell, costs like agent commissions and fees reduce what you actually walk away with, so your net proceeds will be lower.

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